making copy of vhd in current vhds container to ..\backups container products 0 bytes result

Making copy of vhd in current vhds container to ..\backups container products 0 bytes result. Doing a copy vhds\<live vhd> -> paste backups\<live vhd> in something like cloudXplorer produces the expected 127GB sized result almost
immediately. I get the same unexpected result if I copy vhds\<live vhd> to the same container path. Is this unexpected result an issue or bug in current release 5 preview 1 or the underlying azure storage environment?